Analysis of Geographic Areas
Netflix Inc. operates in 2 regions: United States and International.
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- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
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- Selected Financial Data since 2005
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Area Asset Turnover
Netflix Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| International |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Asset turnover ratios for the geographic areas examined demonstrate distinct trends between 2021 and 2025. The United States exhibits a consistent upward trajectory, while the International segment shows a more complex pattern of growth followed by a slight decline.
- United States Asset Turnover
- The asset turnover ratio for the United States increased steadily over the five-year period. Beginning at 4.27 in 2021, it rose to 4.74 in 2022, continued to 5.06 in 2023, and further increased to 5.81 in 2024. This growth culminated in a ratio of 6.02 in 2025. This indicates increasing efficiency in utilizing assets to generate revenue within the United States.
- International Asset Turnover
- The International asset turnover ratio also generally increased from 2021 to 2023, starting at 18.78 and rising to 21.15 in 2022, and then to 23.62 in 2023. However, this upward trend plateaued in 2024 at 24.72, and experienced a slight decrease to 23.49 in 2025. While remaining significantly higher than the United States ratio, the recent decline suggests a potential stabilization or minor decrease in asset utilization efficiency internationally.
The substantial difference in asset turnover ratios between the two geographic areas persists throughout the period. The International segment consistently demonstrates a significantly higher ratio, indicating a greater ability to generate revenue from its asset base compared to the United States. The diverging trends in the latter years of the period warrant further investigation to understand the underlying drivers of the changes in asset utilization efficiency.
Area Asset Turnover: United States
Netflix Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived tangible assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived tangible assets
= ÷ =
The financial performance related to asset utilization within the United States demonstrates a consistent upward trend from 2021 through 2025. Revenues generated in the United States increased steadily over the five-year period, while long-lived tangible assets experienced more moderate fluctuations before increasing in the final year. This combination resulted in a progressively improving area asset turnover ratio.
- Revenues
- Revenues exhibited a consistent year-over-year increase, growing from US$12.1 billion in 2021 to US$18.5 billion in 2025. The growth rate appears to have accelerated in the later years of the period, with larger absolute increases observed between 2023 and 2025 compared to earlier periods.
- Long-lived Tangible Assets
- Long-lived tangible assets remained relatively stable between 2021 and 2023, fluctuating within a narrow range around US$2.7 to US$2.8 billion. A notable increase occurred in 2025, reaching US$3.08 billion. This suggests a potential investment in tangible assets towards the end of the analyzed period.
- Area Asset Turnover
- The area asset turnover ratio increased steadily from 4.27 in 2021 to 6.02 in 2025. This indicates that the company is becoming increasingly efficient in generating revenue from its long-lived tangible assets within the United States. The most significant improvement in the ratio occurred between 2023 and 2024, coinciding with a substantial increase in revenues and a smaller increase in assets. The continued increase from 2024 to 2025 suggests sustained efficiency gains.
Overall, the observed trends suggest effective management of assets in relation to revenue generation within the United States. The increasing asset turnover ratio is a positive indicator of operational efficiency and suggests the company is maximizing the use of its tangible assets to drive sales.
Area Asset Turnover: International
Netflix Inc.; International; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived tangible assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived tangible assets
= ÷ =
The financial performance related to international area asset turnover demonstrates a generally positive trend over the five-year period. Revenues consistently increased, while long-lived tangible assets experienced fluctuations. The resulting area asset turnover ratio exhibited an overall upward trajectory, with a slight decrease in the most recent year.
- Revenues
- Revenues increased steadily from US$17,597,844 thousand in 2021 to US$26,683,036 thousand in 2025. This represents a cumulative growth of approximately 51.8% over the period. The rate of growth appears to have accelerated in the later years, particularly between 2023 and 2025.
- Long-lived Tangible Assets
- Long-lived tangible assets decreased from US$936,967 thousand in 2021 to US$843,633 thousand in 2023, indicating a period of asset reduction or improved asset utilization. However, these assets then increased to US$1,136,034 thousand in 2025, suggesting a renewed investment in tangible assets. The increase in 2025 is the largest single-year increase observed in the period.
- Area Asset Turnover
- The area asset turnover ratio increased from 18.78 in 2021 to 24.72 in 2024, demonstrating improved efficiency in generating revenue from long-lived tangible assets. This indicates that the company was becoming more effective at utilizing its assets to produce sales. However, the ratio decreased slightly to 23.49 in 2025, potentially due to the significant increase in long-lived tangible assets during that year, which may not have immediately translated into proportional revenue gains.
The consistent revenue growth, coupled with the initial decline and subsequent increase in long-lived tangible assets, suggests a dynamic investment strategy. The area asset turnover ratio’s overall positive trend indicates effective asset management, although the slight decrease in 2025 warrants further investigation to determine if the increased asset base will ultimately drive further revenue growth.
Revenues
Netflix Inc., revenues by geographic area
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| International | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Revenue figures demonstrate consistent growth across all reported geographic areas between 2021 and 2025. While both the United States and International segments contribute to overall revenue increases, the International segment exhibits a higher absolute growth in US$ thousands over the five-year period.
- United States Revenue Trend
- Revenue from the United States increased from US$12.1 million in 2021 to US$18.5 million in 2025, representing a cumulative growth of approximately 52.9%. The growth rate appears to be accelerating, with larger increases observed in later years. Specifically, the increase from 2023 to 2024 was US$2.3 million, while the increase from 2024 to 2025 was US$2.4 million.
- International Revenue Trend
- International revenue grew from US$17.598 million in 2021 to US$26.683 million in 2025, a cumulative growth of approximately 51.8%. Similar to the United States, the International segment shows an increasing growth rate. The increase from 2023 to 2024 was US$3.077 million, and from 2024 to 2025 it was US$3.783 million.
- Total Revenue Trend
- Total revenue, the sum of United States and International revenue, increased from US$29.7 million in 2021 to US$45.183 million in 2025, representing a cumulative growth of approximately 52.1%. The growth in total revenue is driven by contributions from both geographic segments.
- Comparative Growth
- While both segments experienced similar percentage growth overall, the International segment contributed a larger absolute dollar amount to the total revenue increase. This suggests that expansion in international markets is playing an increasingly significant role in the company’s overall revenue performance. The International segment’s growth consistently exceeded that of the United States segment in each year from 2022 through 2025.
The observed trends indicate a positive revenue trajectory for both the United States and International segments, with the International segment demonstrating a stronger contribution to overall revenue growth in recent years.
Long-lived tangible assets
Netflix Inc., long-lived tangible assets by geographic area
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| International | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The value of long-lived tangible assets exhibited distinct trends across geographic regions between 2021 and 2025. Overall, a period of initial decline was followed by a resurgence in asset values, particularly towards the end of the analyzed timeframe.
- United States
- The United States demonstrated a slight decrease in long-lived tangible asset value from US$2,833,059 thousand in 2021 to US$2,724,710 thousand in 2023. However, a recovery commenced in 2024, culminating in a value of US$3,075,477 thousand by the end of 2025. This indicates a potential reinvestment or expansion of tangible assets within the United States market during the latter part of the period.
- International
- International long-lived tangible assets experienced a more pronounced decline, decreasing from US$936,967 thousand in 2021 to US$843,633 thousand in 2023. Similar to the United States, a positive trend emerged in 2024, with asset values reaching US$1,136,034 thousand in 2025. The growth in international assets was notably higher in percentage terms than that observed in the United States, suggesting a focused investment strategy in international markets.
- Total Assets
- Total long-lived tangible assets mirrored the combined trends of the two regions. A decrease was observed from US$3,770,026 thousand in 2021 to US$3,568,343 thousand in 2023. The subsequent years showed growth, reaching US$4,211,511 thousand in 2025. The overall increase in total assets between 2023 and 2025 suggests a renewed capital expenditure program.
- Regional Contribution
- The United States consistently represented the larger portion of total long-lived tangible assets throughout the period. However, the international segment’s contribution to the total asset base increased from approximately 24.8% in 2021 to approximately 26.9% in 2025, indicating a growing reliance on international markets for tangible asset deployment.
The observed patterns suggest a potential strategic shift involving initial cost containment or asset rationalization followed by a period of reinvestment and expansion, with a stronger emphasis on international markets towards the end of the analyzed period. Further investigation into the nature of these assets and the underlying business decisions driving these trends would be beneficial.